SAP partners Bosch to connect vehicles and machinery to the internet

European software firm SAP SE and German industrial conglomerate Robert Bosch GmbH have signed an agreement to connect vehicles, manufacturing machinery and tools of Bosch customers over the internet.

The companies said on Wednesday, SAP’s Hana data-analysis software will run on Bosch’s cloud-computing system for industrial customers and SAP will draw on Bosch’s expertise in connecting factory equipment, tools, and vehicles.

The goal is to lower costs and improve quality by letting workers pinpoint equipment and see when machines may be about to go down.

Companies including General Electric Co., Siemens AG, and Bosch are investing in building sensor systems and software that can analyze data from forklifts, windmills, factory equipment and cars to speed operations.

The association agreed to cooperate on projects that could let networks of machines and computers built on the two sets of standards inter-operate with one another. They plan to align the sample code and interfaces that product developers can use.

For SAP, this association will open doors to find new applications for its software among the manufacturers that use Bosch’s machines and automakers that use its parts.

SAP products and innovation chief Bernd Leukert said, “There are massive benefits for the entire industry. The customers we want to serve won’t limit their business to specific regions.”

With this partnership, Bosch expects its own connected industry activities to deliver 1 billion euros ($1.12 billion) in cost savings by 2020 and to generate an additional 1 billion euros in sales.